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Should Value Investors Buy Synnex (SNX) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Synnex (SNX - Free Report) . SNX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.69. This compares to its industry's average Forward P/E of 23.46. SNX's Forward P/E has been as high as 10.89 and as low as 6.31, with a median of 8.46, all within the past year.

Investors should also note that SNX holds a PEG ratio of 0.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SNX's industry has an average PEG of 2.16 right now. SNX's PEG has been as high as 1.01 and as low as 0.53, with a median of 0.74, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Synnex is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SNX feels like a great value stock at the moment.


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